Business and project aims and objectives
A project is a temporary endeavour that is constructed to complete an individual task in the operational field. The project management is the process to start and finish a simple task in an organisation the valuation of a project dependson the size of the task or the production length of the final product. The project management contains several terms or components that are related to the functions of management in an organisation. A project has been defined as a specular term that is used for the cumulative task in an organisation. The term project or project management is used by an organisation in a sense to define the cumulative task in a single word, as the project refers to the combination of multiple activities that are performed by the manufacturing team for completing a task.
In the manufacturing organisations or constructionindustry, the term project management is used by the allocators or the performers of the organisation. For example, a project can understand as the construction of a road, building, bridge, overbridge. In other words, the manufacturing organisations are using the term project management by denoting manufacturing of any product in the operational field. In this detailed study, the learner would be discussing the risk factors associated with the project management. A project consists of risks and costs that are affecting the entire project, which will be discussed by the learner descriptively.
Business and project aims and objectives
The business and project aim to estimate the nature of the task and based on the nature of work or task deciding to start up time and end up time. As per the goal of the project, the project manager is set primary aim to estimate the period of completion of the task. After that, the project manager set the aim to select required workers as well as an entire team to complete the task within the decided period. After finalising the entire team, the project manager is setting aim to get resources from the external environment. The major objective of a project is to perform all cumulative tasks in chronological order and finish the task on time to save time as well as manage project cost.
Current situation – Problem/opportunity statement
The term project is used to define a big manufacturing task or any of construction in one single word. The fact is, a project is filled with lots of risks and uncertainties that imposed the project for several times. Kerznerand Kerzner (2017) defined that, a project is surrounded with risk factors such as nature of the task, nature of the resources and the availability of the resources in the external as well as the internal environment of the organisation. The statement has deduced that for a manufacturing organisation or a construction business, project is a responsible term because by the help of this term that organisation is defining its willingness to perform their task. In the current marketplace, if an organisation has decided to complete the task then the organisation must estimate the uncertainties in such as time, resource, supportive materials and the equipment. Walker (2015) defined that, the risk of weather and other natural calamities affect a project so far that hampered the entire organisation to complete the task strategically. The statement has perceived that a project manager must concentrate on the risk factors and uncertainties that are related to the project, so that the project manager could be able to complete the project on time.
Several opportunities are associated with the risk factors. In other words, it can be articulated that if there are risks are associated with a project, in the same way, some opportunities also being associated with the project. Schwalbe (2015) stated that managing risk at a project site is the most important task for a project manager to make the project successful in the construction site. The statement has deduced that the project manager has the responsibility to take care of an entire project by managing the risks and uncertainties.
Critical assumptions and constraints
The term project is utilised to characterise a major assembling undertaking or any of development in one single word. The truth of the matter is an undertaking is loaded with bunches of dangers and vulnerabilities that forced the project for a few times. Joslinand Müller (2015) characterised that an undertaking is encompassed with hazard factors, for example, nature of the assignment, idea of the assets and the accessibility of the assets in the outside and additionally inside condition of the association. The announcement has concluded that for an assembling association or a development business project is a mindful term because by the assistance of this term association is characterising its eagerness to play out their assignment. In the present commercial centre, if an association has chosen to finish undertaking then the association must gauge the vulnerabilities in, for example, time, asset, steady materials and the hardware. Conforto et al. (2016) characterised that, the danger of climate and other common catastrophes influences a project so far that hampered the whole association to finish the assignment vitally. The announcement has seen that a task chief must focus on the hazard components and vulnerabilities that are identified with the project with the goal that the undertaking chief can have the capacity to finish the task on time.
Analysis and recommendations
A project manager should have that art of knowledge by the help which it can convert any of risks and uncertainties into opportunities. For example, while making a mall or any of building the major risk is health and safety issues for the workers because the construction of a building takes longer time to finish and workers must work hard for a long time. To handle this risk, the project manager can divide all the workers into diverse groups who will work in shifts. When one group is working, then another group will take rest and vice versa. Apart from this the site manager or the project managers even have the software like ERP to calculate as well as manage the risk factors in the construction site.
Preliminary project requirements
A project is dependable over several factors as well as constraints that needed to maintain by the project manager to meet the requirements of the projects. Objectives, criteria to perform the task and the project boundaries are the basic requirements of a project (Dalkir, 2017). Apart from this, the project manager must concentrate on the risk factors that are being associated with a project. Further risk factors would be discussed by the learner in the further section with proper evidence, which will help the reader to understand it in well-manner.
Budget estimate and financial investment analysis showing Present Net Value (NPV)
This proposed table is showing the estimated cost constraints for a project that has revealed that in a project the value of the project is dependable over the length of the project as well as the investment done over a project. This estimated calculation of NPV will help the reader to identify or estimate the total cost of the project in the decided tenure.
Potential high-level risks
The risk factors are already mentioned in the above sections among which risks related to the cost, technology, client, financial and people are termed as a potential elevated risk for a project. It has been assumed that a project is summarised with several factors and each of the factors have individual influencing power to affect an entire project. Tooand Weaver (2014) defined that as a project the major role of that manager is to identify the potential risk factors in advance and make a plan to manage and control those risk factors at the workplace. The statement has deduced that as per the risk factors analysis factor, the project manager needs to be ready with a backup plan to control the risk factors. In the above section, financial need or cost-benefit analysis has been presented by calculating the NPV that would be helpful to estimate the cost of the project. It will further help for the project manager to control the financial risk. For managing the people at the working site an example has been advised in the above section that will be beneficiary for the project manager to reduce the risk of people at the workplace, apart from this, technical risk can be reduced by using computerised technologies like ERP or SAP. On the other hand, by focusing as well as recording regular updates from the client will help to reduce the risk factors associated with the client.
Quality considerations are the crucial factor for the project manager for controlling the risk factors at the working site. Thus, to fulfil this requirement, the project manager must focus on total quality management and Just in time factor while framing up better project plan (Walker, 2015). It has been suggested that, quality is the major constraint of any of project management that must be maintained by the project manager to complete the entire project at scheduled time.
- Conforto, E.C., Amaral, D.C., da Silva, S.L., Di Felippo, A. and Kamikawachi, D.S.L., 2016. The agility construct on project management theory. International Journal of Project Management, 34(4), pp.660-674.
- Dalkir, K., 2017. Knowledge management in theory and practice. London: MIT press.
- Joslin, R. and Müller, R., 2015. Relationships between a project management methodology and project success in different project governance contexts. International Journal of Project Management, 33(6), pp.1377-1392.
- Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning, scheduling, and controlling. New Jersey: John Wiley & Sons.
- Schwalbe, K., 2015. Information technology project management. Berlin: Cengage Learning.
- Too, E.G. and Weaver, P., 2014. The management of project management: A conceptual framework for project governance. International Journal of Project Management, 32(8), pp.1382-1394.
- Walker, A., 2015. Project management in construction. New Jersey: John Wiley & Sons.